During the 1981-1982 recession, McGraw-Hill Research analyzed 600 companies.

Businesses that maintained or increased their advertising expenditures averaged significantly higher sales growth, both during the recession and for the following three years compared to those that eliminated or decreased advertising.

Sales by companies that were aggressive recession advertisers increased 256% over those that didn’t keep up with their advertising. In tough times, consumers don’t stop spending money. They just spend more carefully and with companies and products they recognize and are most comfortable.

THE EFFECT ON PROFITS from the Harvard Business Review:

Advertising as an anti-recession tool, comes the effect of cutting advertising on the bottom line. The rationale that a company can afford a cutback in advertising because everybody else is cutting back [is fallacious]. Rather than wait for business to return to normal, top executives should cash in on the opportunity that the rival companies are creating for them.

The company courageous enough to stay in the light when everyone else is playing safe can bring about a dramatic change in market position. In additional, the article states “Advertising should be regarded not as a drain on profits but as a contributor to profits, not as an unavoidable expense but as a means of achieving objectives. Ad budgets should be related to the company’s goals instead of to last year’s sales or to next years promises”

Source: Dhalla, Naiman K. “Advertising as an anti recession tool,” Harvard Business Review, Jan-Feb 1980.

THE BEST WAY TO BENEFIT IS TO MARKET AGGRESSIVELY AND BE MORE VISIBLE